September 27, 2021 - (Gold Market Wire) - To begin with, we'd like to note that the reason we keep focussing on Silver, is that it is presently better at indicating the general tenor of the market,which, in a large part is due to the fact that Gold has simply gone so quiet it is indicating very little. Silver is simply where the action is, and is a better leading indicator, for now.

This European a.m., Silver has lined up its first challenge; one it needs to meet if the specter of a rally has any hope of manifesting itself. The chart is clear in this regard:

If we can't get over this first hurdle, we are likely going nowhere to lower. Markets must meet challenges, and this one is clear. Aside from the (now evident) fake-out move higher in early September, the downtrend has been resumed. We are reaching the critical juncture where either the downtrend will be erased through time, or asserted when the important level of $22 gives way. The perma-bulls are getting a harsh lesson in Precious Metals Pain - no mater how much they scream "manipulation!"

We have no desire, at all, to participate in this market. Standing aside from this juncture makes sense because there is little to be gained until the stand-off is resolved. We maintain our overall U.S. Dollar bullish stance - one we have had for years - and try and trade the metals from a bullish perspective while regularly running for the sidelines. That 'skittishness' has kept us in profit, and probably even more importantly, out of harms way. There is a lot of blood on the street in the Metals arena, and we wouldn't be surprised if there is more to come. Markets, as all traders know, are made to frustrate and demoralize participants, and stepping out of them is one way to maintain money and sanity. We remain of the opinion that once the blood becomes rich enough, and everyone has thrown in the towel, we will see a decent rally.

For now, more patience is required.

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For those who seek a very short-term outlook - the news is no better for bulls: